Reading Comprehension

While there is no blueprint for transforming a largely
government-controlled economy into a free one, the
experience of the United Kingdom since 1979 clearly
Line shows one approach that works: privatization, in which
(5) state-owned industries are sold to private companies. By
1979, the total borrowings and losses of state-owned
industries were running at about £3 billion a year. By
selling many of these industries, the government has
decreased these borrowings and losses, gained over £34
(10) billion from the sales, and now receives tax revenues from
the newly privatized companies. Along with a dramatically
improved overall economy, the government has been able
to repay 12.5 percent of the net national debt over a
two-year period.
(15) In fact, privatization has not only rescued individual
industries and a whole economy headed for disaster, but
has also raised the level of performance in every area. At
British Airways and British Gas, for example, productivity
per employee has risen by 20 percent. At Associated
(20) British Ports, labor disruptions common in the 1970's and
early 1980's have now virtually disappeared. At British
Telecom, there is no longer a waiting list -as there always
was before privatization -to have a telephone installed.
Part of this improved productivity has come about
(25) because the employees of privatized industries were given
the opportunity to buy shares in their own companies. They
responded enthusiastically to the offer of shares: at British
Aerospace, 89 percent of the eligible work force bought
shares; at Associated British Ports, 90 percent; and at
(30) British Telecom, 92 percent. When people have a personal
stake in something, they think about it, care about it, work
to make it prosper. At the National Freight Consortium, the
new employee-owners grew so concerned about their
company's profits that during wage negotiations they
(35) actually pressed their union to lower its wage demands.
Some economists have suggested that giving away free
shares would provide a needed acceleration of the private-
zation process. Yet they miss Thomas Paine's point that
"what we obtain too cheap we esteem too lightly." In
(40) order for the far-ranging benefits of individual ownership to
be achieved by owners, companies, and countries,
employees and other individuals must make their own
decisions to buy, and they must commit some of their own
resources to the choice.

Which of the following can be inferred from the passage about the privatization process in the United Kingdom?
(A) It depends to a potentially dangerous degree on individual ownership of shares.
(B) It conforms in its most general outlines to Thomas Paine's prescription for business ownership.
(C) It was originally conceived to include some giving away of free shares.
(D) It has been successful, even though privatization has failed in other countries.
(E) It is taking place more slowly than some economists suggest is necessary
q/a-e

Ankitaverma wrote:While there is no blueprint for transforming a largely
government-controlled economy into a free one, the
experience of the United Kingdom since 1979 clearly
Line shows one approach that works: privatization, in which
(5) state-owned industries are sold to private companies. By
1979, the total borrowings and losses of state-owned
industries were running at about £3 billion a year. By
selling many of these industries, the government has
decreased these borrowings and losses, gained over £34
(10) billion from the sales, and now receives tax revenues from
the newly privatized companies. Along with a dramatically
improved overall economy, the government has been able
to repay 12.5 percent of the net national debt over a
two-year period.
(15) In fact, privatization has not only rescued individual
industries and a whole economy headed for disaster, but
has also raised the level of performance in every area. At
British Airways and British Gas, for example, productivity
per employee has risen by 20 percent. At Associated
(20) British Ports, labor disruptions common in the 1970's and
early 1980's have now virtually disappeared. At British
Telecom, there is no longer a waiting list -as there always
was before privatization -to have a telephone installed.
Part of this improved productivity has come about
(25) because the employees of privatized industries were given
the opportunity to buy shares in their own companies. They
responded enthusiastically to the offer of shares: at British
Aerospace, 89 percent of the eligible work force bought
shares; at Associated British Ports, 90 percent; and at
(30) British Telecom, 92 percent. When people have a personal
stake in something, they think about it, care about it, work
to make it prosper. At the National Freight Consortium, the
new employee-owners grew so concerned about their
company's profits that during wage negotiations they
(35) actually pressed their union to lower its wage demands.
Some economists have suggested that giving away free
shares would provide a needed acceleration of the private-
zation process. Yet they miss Thomas Paine's point that
"what we obtain too cheap we esteem too lightly." In
(40) order for the far-ranging benefits of individual ownership to
be achieved by owners, companies, and countries,
employees and other individuals must make their own
decisions to buy, and they must commit some of their own
resources to the choice.

Paragraph 1 : Claims Privatisation working well in an attempt to Open up the economy dramatically.

Paragraph 2 : Presents positive effects , reduced labour problems , rise in productivity due to participation of workers in the Organisation.

Paine's concept brought in support that participation of employees need to have commitment.

Which of the following can be inferred from the passage about the privatization process in the United Kingdom?
(A) It depends to a potentially dangerous degree on individual ownership of shares.

Nowhere dander of Individual ownership is mentioned , intact the passage mentions that individual ownership have improved the condition of Individual firms...

(B) It conforms in its most general outlines to Thomas Paine's prescription for business ownership.

Piane's theory brought to discussion to highlight that committment from employees is necessary..

(C) It was originally conceived to include some giving away of free shares.

We do not have supporting evidence to claim the same...

(D) It has been successful, even though privatization has failed in other countries.

We do not have supporting evidence to claim the same..

(E) It is taking place more slowly than some economists suggest is necessary

True check the last Paragraph -


" Some economists have suggested that giving away free shares would provide a needed acceleration of the privatization process..... "


This clearly supports the given answer choice so (E) is the best answer...